Hi, I am studying the forex market mainly eur/$. As prices develop I am also watching other currency pairs such as yen/$. When watching patterns develop sometimes I notice eur/$ is about to "jump" (according to my criteria whatever this may be) and so is yen/$. One could decide to take the trade or to let it pass. In other situations eur/$ "looks good" but yen/$ doesn't. Anyway, am I right if I state that chances of the euro rising agains the dollar are bigger if yen also looks like jumping? Obviously if both pairs move contrary it means something is going on with the yen related to the euro. Do you find the trend is stronger in case of a general depreciation? (so when both pairs go same direction?). Am I talking complete crap here or is there a relation and is this relation simple or complicated. I can imagine it also depends on the moment of the day etc.. Can anyone comment on this? Thanks, Ivo
http://www.mataf.net/en/analysis-correlation.htm shows correlations positive & negative.... I don't know if this is exactly what you are looking for but is good info to have for forex imo.